"Only in freedom can man develop self-respect, can he walk proudly in the dignity of his humanity, can he talk openly with his neighbors, can he work unshackled, can he live in dignity, and can he die with honor.” - Dwight D. Eisenhower

In this week’s edition: As summer fades and Labor Day reminds us of the dignity of work and the freedoms we enjoy, New York is already shifting into fall mode. The US Open has become as much about economics as tennis, mortgage rates and tariffs are shaping the months ahead, and Midtown South is entering a new chapter that could redefine how we live and build in the city.

It’s the end of August and US Open season! For me, for many of my friends, and for scores of New Yorkers, this is one of the most exciting tournaments of the year. I asked my son to buy tickets for this week's games. He looked them up — and then called to tell me that prices had “climbed through the roof.” He went further: “they’ve been rising every year. Even the grounds passes that not long ago were around $100 have become far more expensive.” He didn’t have hard figures in front of him, but I trusted his memory. Still, I was curious enough to look it u

I had always known that the US Open is one of the richest and most commercially successful annual sports tournaments in the U.S., hugely lucrative in terms of prize money, ticket revenue, and local economic impact. But that’s been true for years. So what’s different now?

First, the prize money. The Open shattered records this year with a $90 million purse, the largest in tennis history, outpacing Wimbledon and the other Grand Slams by more than $12 million. Winning the singles final now brings a $5 million payday, nearly 40% higher than last year.

But beyond prize money, the Open is an economic powerhouse for New York City, generating more than $1.2 billion in impact annually over its 3-week run. That outpaces the combined seasonal impact of the Yankees and Mets, fueled by more than 800,000 visitors who fill hotels, restaurants, bars, and subways. The tournament supports thousands of jobs and has driven $800 million of investment into the Billie Jean King National Tennis Center, strengthening the city’s infrastructure and tourism well beyond the event itself.

And then there are the tickets. Sessions sell out in minutes, only to reappear on resale sites at double or triple the original price. Demand is so strong that the secondary market is driving costs ever higher, with fans competing against scalpers and bots just to get in. The USTA and ticket agents have leaned into dynamic pricing, particularly for court-side and lower-bowl seats, letting real-time demand set the bar.

The result is a digital auction for every seat. In 2025, the average men’s singles final ticket topped $4,000, with premium seats reaching $45,000 and up. Even grounds passes have more than doubled in recent years. If fans, like my son, feel squeezed, they’re not imagining it.

Did I buy the tickets? Of course I did! Supporting my beloved city while treating us to one of its most fabulous sporting events felt worth every penny.

As we move into September, several key themes are likely to shape the economy and real estate in the coming months:

The Fed and Rates

There’s a strong chance the Federal Reserve will cut interest rates soon, possibly as early as September, while monitoring how tariffs affect the economy.

According to The Budget Lab at Yale University, 2025 tariffs directly impact about 14% of U.S. GDP, by increasing the cost of imported goods, lowering real GDP growth by 0.5 percentage points annually. Many companies are already trimming profit expectations and absorbing higher expenses. This dynamic may help soften consumer price spikes and ease fears of recession. However, mortgage rates probably won’t fall dramatically in response. Experts widely agree that while a Fed cut influences variable-rate mortgages and short-term borrowing costs, long-term mortgage rates react more slowly and are heavily tied to bond yields. Most forecasts suggest mortgage rates will dip modestly, remaining elevated in the mid-to-high 6% range for the foreseeable future.

Taxes and the Affluence Effect

Lower taxes and additional breaks could cushion consumers against tariff-driven cost increases, leaving more disposable income circulating in the economy. For wealthy buyers, this often translates into what I call the “Affluence Effect”: stronger demand and higher prices for luxury goods, services, and experiences.

Building Costs

Replacement costs in construction are rising due to tariffs on building materials and labor shortages. The latter is exacerbated by stricter immigration enforcement and mass deportations, which strain the construction workforce. These higher development costs will feed into real estate supply and pricing trends for years ahead.

New York’s Next Mayor

This fall, New York elects a new mayor who will oversee a $100 billion budget. The city needs a steady hand grounded in pragmatism rather than ideology, especially on housing affordability. History shows that new housing gets built when the city encourages investment. Whatever the outcome, the hope is for pragmatic, fiscally responsible leadership to maintain New York’s steady course.

Opportunity for Buyers

For those considering a purchase in the next three months, this moment may prove favorable in hindsight. The combination of potentially lower financing costs, increasing money supply among affluent buyers, and a historic transfer of over $100 trillion in wealth looming over two decades creates a powerful dynamic. Luxury buyers, in particular, may find themselves positioned with considerable strength.

On August 14, 2025, the City Council gave full approval to the Midtown South Mixed-Use Plan: the largest residential rezoning in two decades. The plan rezones a 42-block swath of Midtown South, replacing outdated manufacturing-only rules with mixed-use districts that, for the first time in decades, allow high-density residential development.

What this unlocks: 9,500+ new homes, including 2,800+ permanently affordable units. The framework also preserves key parts of the Garment District by limiting housing in sensitive mid-blocks to protect existing industrial uses.

Community investment is significant:

In tandem, the city is also investing in the 14th Street corridor, aiming to make it greener, safer, and more pedestrian-friendly. A $3M public-private partnership will fund a 2-year design study focused on walkability, plazas, landscaping, and preserving the highly successful busway that has cut travel times since 2019. Early projects, like the new West 14th Street Promenade in the Meatpacking District, have already repurposed curb lanes into gathering spaces, boosting foot traffic and community engagement. These improvements align with the broader vision of Midtown, creating vibrant, accessible public spaces that complement the housing and infrastructure gains of the Midtown South plan.

To balance growth with industry, the Council negotiated added protections for industrial tenants, including a $122M public-private fund to support Garment District businesses that may be impacted.

Bottom line: a carefully balanced recalibration: nearly 10,000 new homes, substantial affordability, a stronger public realm and transit, and explicit support for legacy industries.

At its heart, the plan is both bold and pragmatic: to ease the housing crisis, protect legacy industries, and shape a Midtown where more New Yorkers can live, work, and belong.

Perched on the 10th floor of the historic Starrett‑Lehigh Building, high above West Chelsea, The Yacht Club isn’t your typical rooftop bar: it’s a full-blown lifestyle destination. Spanning a sprawling 20,000 sq ft, this nautical-themed venue offers both indoor dining and an expansive outdoor “Lido Deck” with sweeping Hudson River views.

The team behind Grand Banks and other maritime favorites, has recreated the feeling of a seaside escape, complete with cabanas, the breezy Lido Deck, and Hudson River views that stretch for miles. It's already the restaurant of the summer: mixing craft seafood, cabana-clad elegance, and urbane glamour in a landmark industrial shell.

An elevated spot where design, dining, and that uniquely New York energy all collide.

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